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Perfect Weather in the Abacos

Since my last post we have experienced the longest stretch of good weather we have ever experienced in the winter months. The month of February has been almost all sunshine and warm weather. Unfortunately, I spent the first 10 days in Maryland taking care of some personal business where the temperature was 13 degrees Fahrenheit when I landed in Maryland and nine degrees Fahrenheit when I left 10 days later. Other than visiting with some friends, it was the most miserable 10 days I have spent in a long time.

                    Dena at Nippers

However in February so far the weather in the Abacos has been averaging a pleasant 75 to 80 degrees Fahrenheit, sunny with winds averaging 10 to 15 knots. After I returned from Maryland, we took Odyssey out and attended the Cracker P’s Full Moon party on Lubbers Quarters. This trip provided some excitement as, for the first time, our anchor dragged in the early morning as the wind picked up significantly. Odyssey had moved about 50 yards before we were even aware we were dragging. Another cruiser motored over to our boat on their dinghy and was banging on the side of our boat trying to wake us up before we realized what had happened (note to self: keep VHF radio on higher volume). Fortunately, when I anchored the night before, I had provided a lot of room between us and nearby boats. We were also lucky it was high tide when our anchor started to drag or we would have run aground before we could pick up our anchor to move.

           Sailing on the Sea of Abacos

We spent about 4 days at Great Guana Cay. The weather and water was idyllic as we sailed, snorkeled, and hung out at Nippers and Grabbers with other cruisers and some Guana second homeowner friends we have known for years.

We have returned to Hopetown to attend several free concerts put on by the Nashville Songwriters Association.

Retirement Planning Helpful Hint

If you have followed my retirement planning blog, you know that you should have a goal starting at age 30 of saving 15% of your family’s gross annual income for retirement in a diversified portfolio of stocks, bonds, real estate, precious metals, and cash. You should have your financial funds distributed according to your target asset allocation appropriate for your age and periodically re-balancing those assets.

  Sunset over Fisher’s Bay off Great Guana Cay

However, one thing I would recommend regardless of your tax bracket is, if possible, I would split this annual savings equally between a “tax-deferred” retirement account and a “Roth” type retirement account where the taxes are paid when contributions are made and the account grows tax-free and withdrawals are tax-free.

     Beaching the Dinghy at Grabbers Resort

I would do this to preserve “tax flexibility” when making withdrawals in retirement. Many people over the last couple decades have been making 100% of their retirement contributions to tax-deferred type accounts. When they retire, they will discover the “Deferral Trap.” These unfortunate retirees will be collecting social security benefits and making withdrawals from their taxable retirement accounts (required at age 70 ½) which will push their entire income into a higher tax bracket. They will have no way to manage their tax liability and could needlessly lose 20% or more of their retirement account funds to taxes at a time when they likely can least afford it. 

     People in the Bahamas love their pets

So remember to diversify your tax liability as well as your assets.

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